@Gene Guarino it's been a tough few weeks to the point of discouragement and would hate for the contract to fall through.

Because you live with the person versus renting to them in their own individual Unit you may fall under more lenient guidelines in replacing the tenant.

@Steve C.If a deal is 70% Debt financed, then 70% of the gross income is taxable as UDFI.You then apply a $1000 exemption and 70% of allowable deductions like depreciation, interest, etc.The resulting net taxable income is then subject to trust tax rates, which scale in brackets.A typical $100K investment in a syndication may produce a net taxable amount of about $1,000 on annual distributions of rental income, which will fall in the 10% bracket. 

But, should be your fall back option, not your first option. 

I have a house close to Wichita Falls Texas and I live about 8 hours away from the property.

I am an attorney and investor myself, and happen to fall into the camp of being a big fan of the entity for holding real estate investments.

Every property goes down the assembly line and everyone has to do their job perfectly or at the end of the line the wheels fall off and the car bursts into flames. 

If  your rule is not to rent to anyone with a prior eviction, this person would fall under that rule.  

I'm new to real estate(just started renting out my rental property last fall).

Has anyone filed taxes yet as a W-2 employee who owns only STR, rents for on average less than 7 days per rental (STR), and materially participates (usually requires 100 hours or more in a year and more than anyone else)I’ve heard there are amazing tax benefits if you fall under all of the categories.